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G & M Motor Company v. Thompson

Supreme Court of Oklahoma
567 P.2d 80 (1977)


Facts

Prior to his death in 1970, Wayne Thompson was an accountant who embezzled $78,856.45 from G & M Motor Company (Motor Company) (plaintiff). Wayne used the embezzled funds to pay premiums for life-insurance policies. Motor Company brought suit, and the trial court impressed a constructive trust on items of real and personal property and a portion of the insurance proceeds that had been paid to Wayne’s surviving wife, Shirley Thompson (defendant). The portion of the insurance proceeds subject to the trust was proportionate to the share of the premiums that had been paid with embezzled funds. Shirley appealed. The court of appeals affirmed the impressment of a constructive trust on the real and personal property, but modified the trust on the insurance proceeds, holding that only the part of the funds used to pay for the policy premiums, plus interest, could be subject to the trust. Shirley appealed.

Rule of Law

Issue

Holding and Reasoning (Berry, J.)

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